Consolidating private loans into federal loans

Learn the pros and cons so you don't make things worse and give up valuable benefits in your loan package.

Before you fill out an application, it’s crucial to clarify a few details.

You may be able to consolidate private loans through a private financial institution, but this is not generally recommended.

A federal Direct Consolidation Loan has a fixed interest rate based on the average interest of your federal loans rounded up to the nearest one-eighth of 1 percent.

You’ll need to know if you have ​private student loans or with private student loans — when you refinance).

Federal Direct Consolidation Loans allow you to combine multiple loans into one while keeping all of the benefits of federal student loans.

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However, there are several ways to handle your debt.

Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks.

Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.

The rising costs of higher education are prompting students to go further and further into debt in order to afford college.

A Fidelity study estimates that the graduating class of 2013, for example, faces an average of ,200 in college-related debt upon graduation.

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